UN GLOBAL COMPACT

STRATEGY
2021–2023

“ “
The United Nations Global Compact is
uniquely positioned to support companies
on their journey to align their practices
to a sustainable and inclusive future. The
Ten Principles on human rights, labour,
the environment and anti-corruption offer
a blueprint for businesses seeking to be
part of the collective effort to build back
stronger from the COVID-19 pandemic.  businesses will embed all Ten Principles.
Now is the time to scale up the global
business community’s contributions to
the 2030 Agenda and the implementa-
tion of the Paris Agreement on climate
change. That is the overarching goal of
the Global Compact’s strategic plan for
2021 through 2023.
António Guterres
UN Secretary-General and
Board Chair of the UN Global Compact
2 | GLOBAL COMPACT STRATEGY 2021–2023
CONTENTS
1. EXECUTIVE SUMMARY 4
2. INTRODUCTION AND CONTEXT 6
3. STRATEGIC FRAMEWORK 8
4. OUR AMBITION 10
More must be done by businesses globally 5. OUR DRIVERS OF IMPACT 12
to accelerate corporate sustainability and
responsible business practice. Our strat- 6. PARTICIPANTS AND STAKEHOLDERS 13
egy and ambition are to grow and take our
participants on a journey of demonstrated 7. PRIORITY ISSUE AREAS 17
continuous improvement in the impact that
8. DEFINING CORE PROGRAMMING 20
they create.
Our goal is to raise expectations of how 9. KEY ROLES OF UN GLOBAL COMPACT 21
These are intrinsic to a company and serve 10. INVESTING IN OPERATING CAPABILITIES 23
as the enabler for contributions towards
achieving the 2030 Agenda for Sustainable 11. MEASURING OUR IMPACT 29
Development. The five key shifts articulated
in this strategy reflect our ambitions for global 12. OPERATIONALIZING THE STRATEGY 30
growth, prioritization and impact at scale.
13. FIVE STRATEGIC SHIFTS 31
Together, we will be One Global Compact
uniting business for a better world.
14. CONCLUSION 32
Sanda Ojiambo
15. APPENDIX 34
CEO & Executive Director
UN Global Compact
UN GLOBAL COMPACT STRATEGY 2021–2023 | 3
 1. EXECUTIVE SUMMARY
We, the United Nations Global Compact, believe that in this
Decade of Action we must accelerate and scale the global
collective impact of business, uphold the Ten Principles
of the Global Compact, 1 and contribute to delivering the
Sustainable Development Goals (SDGs) through companies
committed to responsible business practice and through
ecosystems that enable positive change. This is how we
contribute, this is how we catalyze impact, and it is how we,
as One Global Compact move forward together.
UN Global Compact was established in July 2000 by UN
Secretary-General Kofi Annan to mobilize companies
around the world in aligning their operations and strategies
around ten universal principles in the areas of human rights,
labour, the environment, and anti-corruption. The underlying
notion of the Ten Principles of the UN Global Compact is
that corporate sustainability starts with a principles-based
approach to doing business — it is “how” a business
operates in society. This means operating in ways that meet
fundamental responsibilities in each of the four areas.
Over the last 20 years, UN Global Compact has grown from a
group of 44 businesses into what is today the world’s largest
corporate sustainability initiative and a global movement
of more than 12,000 businesses and 3,000 non-business
stakeholders across 160 countries.
While progress is being made, we recognize more must
be done by businesses globally to accelerate corporate
sustainability and responsible business practice.
Our strategy and ambition are to take participants
beyond the minimum, and onto a journey of demonstrated
continuous improvement in the impact that they create.
Over time, our goal is to raise expectations of how
businesses will embed all Ten Principles. These are
intrinsic to a company and serve as the enabler for
contributions towards achieving the 2030 Agenda for
Sustainable Development and the Paris Agreement.
The world is not on track to achieve the 2030 Agenda and
the Sustainable Development Goals (SDGs). We continue
to experience the startling impacts of a worsening climate
crisis. There is an urgent need for large-scale action to avert
devastation to people and planet. Businesses have a critical
role to play in this. UN Global Compact must leverage
its unique position to catalyze global collective action to
change the way that businesses operate, how they impact
the environment, including through their subsidiaries and
supply chains, and how they contribute to the goals of the
Paris Agreement.
4 | GLOBAL COMPACT STRATEGY 2021–2023
In this moment, as we articulate our 2021–2023 strategy,
we are also in the grips of a global pandemic creating
public health and economic crises, setting back progress
on the SDGs, and revealing the vulnerabilities of many
populations, especially women and youth around the
world.
There is clear demand from people, civil society, and
governments for business to contribute to a transformative
recovery from COVID-19. It is now evermore essential
for businesses to embed principles of sustainability in
their ways of working, set ambitious targets, and act with
partners to deliver the 2030 Agenda. Indeed, the adoption
of the Ten Principles and advancement of responsible
business practices is essential for recovery from the
COVID-19 pandemic and long-term corporate competitive
advantage. Only through collective action can society
build back better from the global pandemic and
become more resilient on a trajectory to achieve
the SDGs.
Looking to the future, UN Global Compact’s strategic
ambition is to accelerate and scale the global
collective impact of business by upholding the
Ten Principles and delivering the SDGs through
accountable companies and ecosystems that enable
change.
UN Global Compact’s 2021–2023 strategy aims to realize
five strategic shifts that build upon existing foundations
and successes to enable meaningful new strides in the
current global, environmental, and social context.
1. ACCOUNTABLE COMPANIES:
UN Global Compact will strive to move participant
companies faster and farther than others in
demonstrating progress on corporate sustainability and
responsible business practices. In aggregate, Global
Compact participants will demonstrate higher adherence
to the Ten Principles and material contribution to the SDGs
than those who are not part of UN Global Compact.
2. BALANCED GROWTH OF LOCAL AND REGIONAL
NETWORKS FOR GLOBAL COVERAGE: In addition
to a concerted effort to strengthen each of the existing
69 Local Networks of the Global Compact, extending
our engagement with businesses in other countries,
particularly in the Global South, will be a central objective,
achieved through the establishment of new Local
Networks, Regional Networks, and broader geographic
coverage of existing Local Networks.
3. MEASURABLE IMPACT IN PRIORITIZED AREAS: public commitments to human rights and labour, demonstrating
Anchored by the Ten Principles in the areas of human broad-based gender parity in operations, enforcing compliance
rights, labour, the environment, and anti-corruption as on anti-corruption and bribery, and taking actions to advance
the fundamental driver of corporate sustainability and the SDGs. Detailed sub-indicators are included in the document
responsible business practice, the strategy prioritizes five below and in the APPENDIX .
issue areas where the Global Compact will seek to lead and
shape. These include Gender Equality (SDG 5), Decent A refreshed Communication on Progress (CoP) will be integral
Work and Economic Growth (SDG 8), Climate Action to this strategy, linking progress to impact across the Ten
(SDG 13), Peace, Justice and Strong Institutions (SDG 16), Principles. The refreshed CoP provides an essential tool
and Partnerships (SDG 17). Recognizing the importance and consistent framework that facilitates engagement with
of national contexts, country-level priorities aligned to the companies on their individual sustainability journeys and enables
unique value proposition of the Global Compact will remain an aggregate view of impact.
central. Our programmes, efforts to curate knowledge and
As we seek to deliver the strategy, our internal operating model
best practice, convening, and partnerships will seek to deliver
will necessarily change. Specifically, we will invest in building
material progress in each of these prioritized areas with all
deeper global, regional, and local capabilities, growing our
Local Networks required to deliver programming on the areas
expertise in priority issue areas such as climate, strengthening
of the Ten Principles.
Local Networks, revising participant fee structures, transforming
our digital capabilities, and partnering with ecosystem
4. HARNESSING THE COLLECTIVE ACTION OF SMEs:
Accounting for most of the world’s businesses and employers, participants globally and nationally.
SMEs have a unique collective role in advancing corporate
Cognizant that this strategy will be implemented during
sustainability and responsible business practices individually
a COVID-19 recovery period, a strong focus of the Global
and in the value chains in which they participate. SMEs are
Compact’s engagement with participants and others will
also essential actors in advancing the SDGs in developing
emphasize the recovery and building back better together.
and emerging economies, especially in Africa. With over half
Each country and sector will have a unique path to address the
of Global Compact participants coming from this segment,
multifarious stresses experienced. Business has a transformative
a specific focus of the strategy is to enhance engagement
role to play in this recovery, which we will support.
and action of SMEs through the establishment of a targeted
and cross-cutting SME programme that leverages digital We are optimistic about UN Global Compact’s capability to use
tools and value chains to reach scale. Throughout this this unique moment and elevate our ambition, to heighten and
programming, we will apply the lenses of gender and youth, seize the urgency to act, and to accelerate and scale global
recognizing the importance of SMEs to reach these two collective impact by upholding the Ten Principles and delivering
demographics. We will also tie our SME approach closely to on the SDGs through accountable companies and ecosystems
the Africa Strategy, which will be refreshed in early 2021. that enable positive change.
5. STRONG AND ACTIVE ENGAGEMENT WITH THE UN:
In working ever more closely with various UN Agencies,
Resident Coordinators, and UN Country Teams, the Global Our strategy will bring to UN Global
Compact’s reach and ability to drive change in business Compact more differentiation and
is substantially enhanced. This strategy calls for deeper
growth through an embrace of
collaboration at the global and national levels, particularly
in the UN Common Country Analysis and private sector
our unique roles, delivery through
engagement processes to unlock the collective strength of a focus on impact, and discipline
the UN in advancing corporate sustainability and responsible through selectivity in what we do.
business practice globally.
Together, we will be One Global
In pursuing these five strategic shifts over the 2021–2023 Compact uniting business for
period, we will measure collective impact in five critical
areas, namely the number of Global Compact participants
a better world.
committed to the goals of the Paris Agreement, making
1. Derived from the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration
on Environment and Development, and the United Nations Convention Against Corruption, the Global Compact’s Ten Principles are a universal and timeless framework for
corporate sustainability and responsible business practice.
UN GLOBAL COMPACT STRATEGY 2021–2023 | 5
 2. INTRODUCTION
AND CONTEXT
Twenty years ago, in July 2000, United Nations Secretary-
General Kofi Annan put forth the vision of “a global compact
of shared values and principles, which will give a human face
to the global market.” Since then, UN Global Compact has
grown from a group of 44 businesses into what it is today,
the world’s largest corporate sustainability initiative and a
global movement of more than 12,000 businesses and 3,000
non-business stakeholders across more than 160 countries.
Over two decades, UN Global Compact has mobilized
companies around the world to align their operations and
strategies around Ten Principles in the areas of human
rights, labour, the environment, and anti-corruption and
enabled them to report on their progress in living up to these
principles.
As a precursor to the global business sector’s corporate
sustainability movement and the ongoing efforts to
mainstream Environmental, Social, and Governance (ESG)
actions in the corporate world, the Global Compact has
played an important role in driving positive change in the
expectations and behaviour of the business world. Today
the movement for sustainability is flourishing with new
entities at the global and national levels all working toward
demonstrating contributions to sustainability.
With the broad-based support of
all 193 participant countries of the
United Nations General Assembly,
UN Global Compact remains the
single, global normative authority
and reference point for action and
leadership within a growing global
corporate sustainability movement.
Corporate sustainability starts with a company’s value
system and a principles-based approach to doing business.
This means operating in ways that, at a minimum, meet
fundamental responsibilities in the areas of human rights,
labour, environment and anti-corruption. Responsible busi-
nesses embody the same values and principles wherever
they have a presence and know that good practices in one
area do not offset harm in another. By incorporating the
Ten Principles of the UN Global Compact into strategies,
policies and procedures, and establishing a culture of
integrity, companies are not only upholding their basic
6 | GLOBAL COMPACT STRATEGY 2021–2023
responsibilities to people and planet, but also setting the
stage for long-term success.
The establishment in 2015 of the Sustainable Development
Goals (SDGs) has created a global consensus on the devel-
opment framework for a better world. Engagement of the
business community in this agenda is critical. Achieving the
Global Goals and the goals of the Paris Agreement requires
the business community from the large multinational
corporations to the small and medium-sized enterprises to
purposefully embed the Ten Principles in their operations.
UN Global Compact is leading this movement by driving the
ambition and laying out the roadmap for businesses to do
their part in this global effort.
Progress is being made. Every participant of the Global
Compact has committed to make progress on embedding
the Ten Principles in their operations. Companies are
naturally at different stages in their sustainability journey
and the Global Compact has embraced them so long as
they commit to continuing that journey and demonstrating
progress.
UN Global Compact works with all companies, be they
global or local, large or small, in the Global North or the
Global South, all with a view to advancing the responsible
business agenda. The Global Compact’s participant base
reflects this diversity. Our due diligence process ensures
participants are genuinely aligned to serving the agenda.
Much more remains to be done but we know what is needed.
As we look to the next decade, there is significant cause for
concern about the future of our society and planet. Current
trajectories suggest that the world is not on track to achieve
the SDGs. Within the global business community, current
targets and actions are insufficient: Even within the current
participants of UN Global Compact, only 39 per cent of
companies believe their targets are sufficiently ambitious
and only 46 per cent are embedding SDGs into their core
business.2 There are only 10 years left to shift the world onto
a 1.5°C trajectory, reduce global inequalities, and achieve the
substance of the SDG agenda.
To address this challenge, UN Secretary-General António
Guterres has galvanized the world for a Decade of Action —
an ambitious global effort to deliver the promise of the
2030 Agenda.
2. UN Global Compact 20th-Anniversary Progress Report: Uniting Business in the Decade of Action
In this Decade of Action, there is an urgent need for the busi-
ness community to raise its ambition and use its resources,
scale, and speed, to meaningfully contribute to delivering
the SDGs. Accomplishing the SDGs necessitates the global
and local collective action of business, its ecosystems, and
its engagement with government and the breadth of civil
society. Raising this ambition among businesses and ac-
celerating progress begins with adopting the Ten Principles
as the DNA of business action and contribution. The Ten
Principles are the “How.” The SDGs are the “What.”
COVID-19 and its economic aftershocks only amplify the
very real and urgent need for collective action to address
structural inequalities, poverty, the climate crisis, and
gaps in social protection, especially for women and youth.
There is a clear demand from the public, civil society, and
governments for business to contribute to a transformative
recovery from COVID-19. It is now essential for businesses
to embed principles of sustainability in their ways of working,
set ambitious targets, and act with partners to deliver the
2030 Agenda during the Decade of Action. Indeed, the adop-
tion of the Ten Principles and advancement of responsible
business practices is essential for businesses to effectively
recover from the COVID-19 pandemic while creating long-
term corporate competitive advantage and contributing to
the goals of the Paris Agreement. Only through collective
action can society build back better from the global
pandemic and become more resilient on a trajectory to
achieve the SDGs.
We recognize that this strategy will be implemented in the
context of COVID-19 recovery, as we emerge with a sober
understanding of the weaknesses of our social contract and
need for improved corporate sustainability and responsible
business practices. This global reset is a unique platform for
UN Global Compact to work with our participants to shape
national recovery plans and rebuild economies with the Ten
Principles and SDGs as a guiding force.
In this 20th anniversary year of the Global Compact, we
must uphold the Ten Principles and rise to Kofi Annan’s
challenge to devise a “compact on the global scale, to
underpin the new global economy." With this motivation,
UN Global Compact will launch its 2023 Strategy for the
first three years of the Decade of Action to catalyze bolder,
faster, and at-scale action by businesses of all sizes, in all
sectors, and across the world.
UN GLOBAL COMPACT STRATEGY 2021–2023 | 7
 3. STRATEGIC FRAMEWORK
The 2021–2023 UN Global
Compact Strategy is built upon
a Framework with five key
elements, each representing
a deliberate, specific set of
choices on our ambition, on
who we will engage, on the
issues and programmes we will
focus upon, and on how we will
operate (see Figure 1).
8 | GLOBAL COMPACT STRATEGY 2021–2023
We start first with our ambition, which is what we seek to accomplish in
the world:
In this Decade of Action, the strategic ambition of the Global Compact is to
accelerate and scale the global collective impact
of business by upholding the Ten Principles and
delivering the SDGs through accountable compa-
nies and ecosystems that enable change.
To achieve this ambition, we seek to drive impact through two main vectors:
Accountable Companies and Enabling Ecosystems. Accountable
companies are businesses that are committed to accelerating their own
individual company progress in upholding the Ten Principles and contributing
to the SDGs. Enabling Ecosystems are global and local communities and
networks that encourage, facilitate, and support collective action on the
Ten Principles and the SDGs. (See SECTION 4 and 5 for more detail.)
We will drive this intended impact by engaging with key stakeholders
including our participants, who include MNCs, national companies and
SMEs — and other selected groups including the United Nations, govern-
ments, civil society, academia, investors, labour, and industry and sector
coalitions (in particular, energy and extractives, transport, manufacturing
and infrastructure). At its core, this ambition requires UN Global Compact
to harness the impact of united and aligned collective action across all
our local networks, participants, and stakeholders. (See SECTION 6 for more
detail.)
We have defined a set of issue areas where greatest impact can be expected.
For these, together with our Local Networks, we will co-create programmes
that are best suited to leverage our unique capabilities and achieve global
scale. (See SECTIONS 7 and 8 for more detail.)
We will achieve this collective action by embracing six focused roles,
each of which leverage UN Global Compact’s unique assets and place in
the world. (See SECTION 9 for more detail.)
To effectively and efficiently deliver, we will invest and ensure a strong
foundation of internal capabilities that grow and empower effective
Local Networks; improve alignment and coordination internally; refine our
resourcing model; scale through robust digital platforms that connect,
communicate, and convene; curate content and tools for action; and confirm
progress with interoperable standards, reporting and data. (See SECTION 10
for more detail.)
Implementation of the strategy will be measured with clear indicators (see
SECTION 11) and will begin with an operationalization phase, bringing all
relevant stakeholders together to initiate actions in various workstreams.
(See SECTION 12 for more detail.) FIGURE 1: UN GLOBAL COMPACT STRATEGY FRAMEWORK
UN GLOBAL COMPACT STRATEGY 2021–2023 | 9
 Photo: Ghetty Images/Anucha Sirivisansuwan
4. OUR AMBITION
In this Decade of Action, the Global Compact’s
strategic ambition is to
accelerate and scale the global
collective impact of business by
upholding the Ten Principles and
delivering the SDGs through account-
able companies and ecosystems that
enable change.
This ambition is aligned with and supports the work of the
universe of UN agencies and entities at all levels to advance
the Global Goals to end poverty, protect the planet and
ensure that all people enjoy peace and prosperity by 2030.
This ambition has three essential components: a focus on
collective impact, the central role of the Ten Principles, and
how they will help businesses deliver the SDGs.
ACCELERATE AND SCALE GLOBAL improve health and education, reduce inequality, and spur
COLLECTIVE IMPACT
Our most fundamental ambition is to accelerate and scale
global collective impact. We will continue to prioritize the
adoption of the Ten Principles, and the continuous advance-
ment of what it means to achieve them, as the fundamental
vehicle for progress and improvement by business. Over
time, our goal is to raise the floor — the baseline — and raise
the ceiling — the expectations— on the social contract
of business to communities across all Ten Principles in
the areas of human rights, labour, the environment, and
anti-corruption.
UPHOLDING THE TEN PRINCIPLES
The Global Compact was founded to uphold, promote, and
embed the Ten Principles in business.3
The underlying notion is that corporate sustainability starts
with a company’s value system and a principles-based
10 | GLOBAL COMPACT STRATEGY 2021–2023
approach to doing business. Put simply, it is “how” a business
is expected to operate. This means operating in ways that, at
a minimum, meet fundamental responsibilities in the areas
of human rights, labour, environment, and anti-corruption.
Our strategy and ambition are to take participants beyond
this minimum, and onto a journey of demonstrated continu-
ous improvement in the impact that they create.
Responsible businesses manifest the same values and
principles wherever they have a presence and know that
good practices in one area do not offset harm in another.
Participants of UN Global Compact agree to uphold these
non-negotiable commitments. By incorporating the Ten
Principles of UN Global Compact into strategies, policies,
and procedures, and establishing a culture of integrity,
companies are not only upholding their basic responsibilities
to people and the planet, but also setting the stage for
long-term success.
While the Ten Principles are
timeless and define how an
organization works and inter-
acts with society, customers,
employees, suppliers, and the
environment, the SDGs are a
timebound framework for what
we seek to achieve.
3. These principles are derived from: the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work,
the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption.
4. Description of SDGs from Department of Economic and Social Affairs https://sdgs.un.org/goals
In essence, the SDGs elaborate a critical destination that the
international community has established for our collective
progress. The Ten Principles represent a vehicle, employed
by businesses, no matter their size, location, or industry, to
advance towards our destination. Today, the Ten Principles
are proving critically important in how business can build
back better from the COVID-19 pandemic. They are timeless.
DELIVERING THE SUSTAINABLE
DEVELOPMENT GOALS (SDGs)
The 2030 Agenda for Sustainable Development, adopted by
all United Nations Member States in 2015, provides a shared
blueprint for peace and prosperity for people and the planet,
now and into the future. At its heart are the 17 Sustainable
Development Goals (SDGs), which are an urgent call for
action by all countries — developed and developing — in a
global partnership. They recognize that ending poverty and
other deprivations must go together with strategies that
economic growth — all while tackling climate change and
working to preserve our oceans and forests.4
The 17 SDGs define what we aim to accomplish as a global
community. They cover a wide range of challenges, including
environmental sustainability, clean water, and poverty. For
any given company, contribution to the SDGs will vary based
on the nature of their business, their industry, and where they
can have meaningful impact.
UN Global Compact’s stated ambition relies on the adoption,
integration, and implementation of the Ten Principles by the
business sector as essential to positively contributing to
achieving the SDGs, and global collective impact.
UN GLOBAL COMPACT STRATEGY 2021–2023 | 11
 5. OUR DRIVERS
OF IMPACT
We see a clear need for greater ambition by more individual
companies, to embed the Ten Principles in their businesses,
and demonstrate an increased focus and commitment
towards specific corporate goals and targets.
Therefore, our new strategy calls on us to focus on collec-
tive corporate action, where our participants are not just
representative of the world, but they are accountable
companies ahead of the world in demonstrating adher-
ence to the Ten Principles and impact for the SDGs.
RE-DEFINING PARTICIPATION IN UN
GLOBAL COMPACT: A COMMITMENT TO
ACTION AND PROGRESS
To accomplish united, global collective impact we will focus
our efforts in two broad areas: on accountable companies
and enabling the ecosystems in which they operate.
Accountable companies are businesses that are commit-
ted to accelerating their own individual company progress in
upholding the Ten Principles and contributing to the SDGs.
We believe we have a responsibility to
move participant companies faster
and farther than the average company
in demonstrating progress in corpo-
rate sustainability and responsible
business practices.
This means forging partnerships with our participants,
ranging from MNCs to national companies to SMEs, who
commit to setting clear priorities across the Ten Principles
and have a willingness to do the work, even when it gets
uncomfortable, to advance their performance on corporate
sustainability and responsible business practice.
It also means the strengthening our accountability systems
through the revised CoP and offering a participant structure
that is inclusive and encourages participants from all
industries, regardless of their starting point on the Ten
Principles, who show a clear, demonstrable commitment to
act and accelerate their measured progress.
12 | GLOBAL COMPACT STRATEGY 2021–2023
The revised CoP will continue to be an annual requirement
for participants, and will enable businesses to recognize
expected norms as guidance for action, learn how to
effectively report on Ten Principles and SDGs, track their
own progress and identify areas for improvement, publicly
showcase progress towards the Ten Principles and SDGs,
along with a tiering system, view data of others to identify
best practices by industry or sector, and navigate curated
content and tools based on their own progress. Clearly
linking reporting and learning provides a significant new
value proposition to participants.
Notably, the revised CoP will also become the basis for
determining if a participant has continued to demonstrate
sufficient progress to remain a part of the Global Compact.
This discernment will be based on clear definitions of what
leadership looks like for companies of different sizes and
sectors so that the standards and expectations are clear.
Enabling Ecosystems are global and local communities
and networks that encourage, facilitate, and support
collective action on the Ten Principles and the SDGs. We
engage with, and when necessary, catalyze global and
local ecosystems for the adoption of the Ten Principles and
collective action towards achievement of the SDGs.
We strive to become a stronger One Global Compact as a
network of interconnected global and local partners who
plan, work, and implement together for collective action
united around a common ambition to protect people and the
planet. The strength of these local networks in our global
family is critical: strong collectives of MNCs and subsidiar-
ies, national companies, SMEs, and local partners, who are
accountable to and operate according to the Ten Principles
and inclusive, responsible, and sustainable growth.
To accomplish this, we will work with partners to continually
shape and reshape the global and national ecosystems
to facilitate businesses to make positive sustainability-
oriented changes through multi-stakeholder collective
action, supportive regulatory structures, and active
sustainability-focused policy platforms.
6. PARTICIPANTS
AND STAKEHOLDERS
UN Global Compact’s ambition for global collective action
requires the organization to harness energy, focus and
attention across all our Local Networks, participants, and
stakeholders (see Figure 2).
Internally, our core stakeholders are our staff, Local
Networks, and our Board.
As an initiative of the UN Secretary-General, we strive to
continually strengthen collaboration with sister agencies,
with UN Resident Coordinators, and with UN Country Teams.
We will maintain a closer partnership with the “Guardians
of the Ten Principles,” namely the International Labour
Organization (ILO), UN Environment Programme (UNEP),
Office of High Commissioner for Human Rights
(OHCHR), and the United Nations Office on Drugs
and Crime (UNODC).
Businesses across all participant
constituencies, including MNCs,
national companies and SMEs, are
critical stakeholders as they are our
primary agents of change. However,
the Global Compact is not just for
business. It is a business-led multi-
stakeholder coalition. As such, we
regularly engage with civil society,
labour, academia, expert networks,
foundations, funding partners, industry
and sector coalitions, peer organiza-
tions, government partners, and the
United Nations.
PARTICIPANTS
Our participants comprise primarily three
types of businesses: Multi-National Corporations
(MNCs), leading national companies, and small
and medium sized enterprises (SMEs). Each of these
participants are a key constituency for UN Global Com-
pact, and we require solid representation and engagement of
each type to ensure we have the global, collective, at-scale
impact we seek.
FIGURE 2: UN GLOBAL COMPACT KEY STAKEHOLDERS
UN GLOBAL COMPACT STRATEGY 2021–2023 | 13
 The Global Compact provides our participants with unique
value propositions (see Figure 3):
▪ First, the Global Compact’s mission is anchored
on Ten Principles that are universal timeless, and
incontestable. These principles apply to all types of
entities, sizes of business, wherever they operate in the
world. They are the framework for what a responsible
business must build into its ways of working.
▪ Second, through our global multi-stakeholder network
and as part of the UN System the Global Compact
is uniquely placed to convene, connect and amplify
businesses, civil society, labour, governments, industry
coalitions, academia, and UN agencies to raise
ambitions, catalyze action, advance policy dialogue,
and curate and create knowledge, content and tools.
For example, we have connected the business schools
of PRME, many of which are national institutions with
the Local Networks on national progress towards the
SDGs.
▪ Third, the Global Compact’s normative authority is
drawn from the mandate conferred by all 193 members
of the United Nations General Assembly. Our United
Nations mandate “to advance United Nations values
and responsible business practices” among the
global business community ensures that the actions
and activities of the Global Compact come with the
credibility and legitimacy to set expectations and take
a stand on the most important issues, drawing on the
wealth of knowledge and expertise in the UN System.
▪ Fourth, Local Networks in all corners of the world
provide a depth of local knowledge, local engagement,
and provide the credibility to engage, influence,
convene, and connect national business and ecosystem
leaders in each country where they are present.
▪ Fifth, the Global Compact’s weight of collective
participants includes a broad scale from MNCs to
SMEs. Indeed, SMEs as a segment account for most of
the world’s businesses and employ most of the world’s
workers. They have not been fully engaged in the
corporate responsibility agenda in a clear and effective
manner. That said, SMEs account for well over half
of the Global Compact’s participants and provide an
essential opportunity for engagement in the global
corporate sustainability and responsible business
practice agenda.
▪ Finally, the Global Compact has built targeted technical
capabilities and is helping business understand
and integrate the Ten Principles into their business
practices to achieve desired SDG impact in their
operations and practices.
While our broad value proposition is relevant to the entire
business sector, the Global Compact offers differentiated
value to MNCs, national companies, and SMEs enabling all
of us to achieve the global collective impact we seek (see
Figure 4).

FIGURE 3: UN GLOBAL COMPACT UNIQUE SOURCES OF VALUE FOR PARTICIPANTS FIGURE 4: UN GLOBAL COMPACT VALUE PROPOSITION BY PARTICIPANT CONSTITUENCY

MULTI-NATIONAL LEADING NATIONAL SMALL AND MEDIUM SIZED

CORPORATIONS COMPANIES ENTERPRISES

▪ Join leading companies committed to
and recognized for a journey toward
responsible, sustainable business and
impact on the SDGs alongside the UN
▪ Learn how to implement best
practices in corporate sustainability
in your business and supply chains
through curated educational
resources, practical tools and
engaging with peers
▪ Access to Local Networks to
engage their national subsidiaries
in better practices, a responsible
business environment, and enable
understanding of national impacts
▪ Insight on the use of reporting to
demonstrate and be recognized
for impact on upholding the Ten
Principles and delivering the SDGs,
particularly in focus areas
▪ Be involved in platforms to
collectively engage governments
and regulators on policy dialogue,
including at the global level
▪ Join leading companies committed
to and recognized for a journey
toward responsible, sustainable
business and impact on the SDGs
alongside the UN
▪ Learn how to implement best
practices in corporate sustainability
in your business and supply chains
through curated educational
resources, practical tools and
engaging with peers in their country
context
▪ Network with local responsible
SMEs and other value chain actors
▪ Insight on the use of reporting to
demonstrate and be recognized
for impact on upholding the Ten
Principles and delivering the SDGs,
particularly in focus areas
▪ Be involved in platforms to
collectively engage governments
and regulatory bodies on policy
dialogue
▪ Join and learn from leading national
companies committed to and
recognized for a journey toward
responsible, sustainable business
and impact
▪ Better understand norms and
expectations for responsible
business and a sustainable company
▪ Access curated educational
resources and practical tools to
best practices for responsible
business
▪ Network with other companies
across the value chain on a journey
to sustainability
▪ Collective representation to engage
governments and regulatory bodies
on policy dialogue that improve the
context for SMEs

14 | GLOBAL COMPACT STRATEGY 2021–2023 UN GLOBAL COMPACT STRATEGY 2021–2023 | 15


STAKEHOLDERS
Beyond participants, the Global Compact engages with each
stakeholder to offer a differentiated, unique value proposi-
tion that leverages our capabilities to meet their specific
needs:
For industry and sector coalitions, the Global Compact
engages to advance the corporate sustainability and
responsible business agenda through their participants
and platforms. We connect them to respected and credible
thought leaders, knowledge, resources, and thinking of the
UN system and other partners. We provide an opportunity to
be an action or knowledge partner on bringing into practice
the Ten Principles. In particular, UN Global Compact will
seek to engage with sectors that are high priority in achiev-
ing the goals of the Paris Agreement, such as energy and
extractives, transport, manufacturing, and infrastructure.
For investors, the Global Compact actively engages and
advocates for the integration of corporate sustainability and
responsible business practices, including ESG metrics, in
investment decisions. This will further strengthen national
and global sustainability ecosystems, increasing the
incentives and making it easier for businesses to employ
sustainable practices.
For governments, the Global Compact is a vehicle through
which governments can engage the private sector to
advance their SDG-related policy objectives. Additionally,
UN Global Compact provides an additional channel through
which governments can engage with the UN to continue
shaping the normative framework for development. We have
a clear approach to engaging countries in the Global South
in local and global dialogue, are a respected thought leader
on best practices, act as a policy interlocutor at global and
regional levels and in all countries with Local Networks, and
facilitate policy dialogue between governments, industry
associations, and the private sector.
16 | GLOBAL COMPACT STRATEGY 2021–2023
For Civil Society, Labour, Academia (including PRME),
the Global Compact is a critical connector between the
business community and these essential ecosystem
participants, drawing on expertise and experience of all
partners to strengthen dialogue with business and govern-
ment at the global and national levels.
For the United Nations, the Global Compact brings the
voice of the business sector and a credible engagement
with all UN System participants — Agencies, RCOs, and
UNCTs — with a view to enabling greater alignment of
business with the SDGs and demonstrated progress on the
goals. While supporting the delivery of the SDGs is clearly
providing greatest value to the UN, the Global Compact
also supports UN agencies to advance their missions and
mandate around the world.
Specifically, the strategy calls for UN Global Compact to
deepen local UN collaboration by engaging and supporting
RCOs and UNCTs to incorporate business data, insights, and
expertise in UN Common Country Analysis and Sustainable
Development Cooperation Frameworks, and to implement,
in partnership with the private sector, results under the
Cooperation Frameworks.
By anchoring UN Global Compact’s collaboration with RCOs
and UNCTs around these critical national SDG planning and
implementation processes, UN Global Compact ensures
that local private sector partners have a greater sense of
clarity, incentive, and ownership in advancing local SDG
priorities. UN Global Compact’s leadership in this area can
give business a better understanding of where it can most
effectively contribute to national SDG priorities, while also
laying foundations for more effective UN-business partner-
ships which can deliver stronger, measurable development
impact.
7. PRIORITY ISSUE AREAS
To achieve the global collective impact we seek, we must Priorities should also be in specific need of UN Global
channel our organization’s energy, focus, and resources on a Compact’s unique capabilities and assets that enable it to
selected set of priority issues. lead in several roles and to be the most catalytic force in
the corporate sustainability ecosystem. While UN Global
While the SDGs have been constructed to reflect the broad Compact’s toolkit is broad, its application of each role must
and interconnected needs of humanity, we recognize UN be selective and intentional, and tailored. Different issue
Global Compact will have the greatest potential for impact areas, locations, business segments, and ecosystem actions
when its efforts are focused on issues where business and sub-topics will require a tailored approach through
has the highest potential for impact anchored on the Ten carefully designed programming and selective partnerships.
Principles, and where the Global Compact can be additive to
the ecosystem. Our broad stakeholder consultations on prioritization
involved an intentional, thoughtful, deliberate dialogue in
The Global Compact’s focus areas must respond to the two main categories (see Figure 5):
greatest material and expressed needs of the business
▪ Is there high potential for impact by the business
sector and its business participants, ensuring that efforts
sector?
are globally relevant and inspire action by all business
segments. Focus areas must also be those in which there is ▪ Is there additionality to the sustainability ecosystem?
a specific role for businesses to advance the SDGs. Efforts
must also be additive to global and national sustainability Within each of these categories, we examined 6 different
ecosystems, including aligning with UN priorities for the
elements to test our thinking, rationale, and assessment.
Global Compact, leveraging our unique capabilities and
reach, and with opportunity to create systemic change.
FIGURE 5: ASSESSING UN GLOBAL COMPACT IMPACT POTENTIAL AND ADDITIONALITY
Impact potential and additionality to drive prioritization: Engagement categories:
Is there high potential for impact by the business sector?
▪ Business sector can make a material difference in driving impact
▪ Companies are requesting support (demand driven)
▪ Collective action can achieve scaled impact
▪ Inspires action from MNCs to national companies and SMEs
▪ Relevant impact for Global North and Global South Lead and shape
▪ Increases accountability of private sector to act
Co-operate with others
Is there additionality to the sustainability ecosystem?
Follow and amplify
▪ Advances maturity of global and national ecosystems
▪ Aligned with UN priorities for UN Global Compact
▪ Leverage UN’s technical, policy, diplomatic leadership
▪ Availability of technical partners to operationalize
▪ Leverage UN Global Compact unique capabilities and reach
▪ Opportunity to innovate to “change the system” (i.e. the hardware,
infrastructure, rules of the game)
UN GLOBAL COMPACT STRATEGY 2021–2023 | 17

Applying these criteria and filters led us to identify
priorities for our efforts and attention: those in which
we will lead and shape, those in which we will seek to
co-operate with others and those we seek to amplify.
We will strive to achieve global coherence along these
priorities, while recognizing national contexts play an
important role in defining areas of priority. Adaptation of
these strategic choices to the national context by Local
Networks will be essential to delivering the strategy.
LEAD AND SHAPE
Our primary priority is to lead and shape the
adoption and application of the Ten Principles in
the areas of human rights, labour, environment,
and anti-corruption (see Figure 6). As the DNA of the
Global Compact, we will prioritize the adoption of the Ten
Principles, and the continuous advancement of what it
means to achieve them, as the fundamental vehicle for
change, progress, and improvement.
In addition, the Global Compact is uniquely positioned to
lead and shape the business community’s progress and
action on five priority SDGs (see Figure 6):
▪ SDG 5: Gender Equality
▪ SDG 8: Decent Work and Economic Growth
▪ SDG 13: Climate Action
▪ SDG 16: Peace, Justice and Strong Institutions
▪ SDG 17: Partnerships for the Goals
In many cases, the issues prioritized in this category align
with topics that UN Global Compact will naturally address.
For example, our efforts to drive greater progress by
business on Decent Work and Economic Growth (SDG 8)
will have direct impacts on youth, particularly in countries
with large youth demographics and especially in the Global
South where most of the world’s youth population lives.
Our work on Gender Equality (SDG 5) will also ensure
women are a central focus of our programmes.
Lead and Shape issues will constitute the core of UN
Global Compact’s programmatic interventions.
In these priority areas, the Global Compact will strive to
enable material behaviour change in business through
targeted programmes at scale. We will:
▪ Curate best practices, knowledge, and tools that
empower business sector action
▪ Engage in thought leadership or encourage external
research when there is additionality for doing so
▪ Spotlight issues to raise corporate ambitions;
▪ Convene stakeholders on policy dialogue and advocacy;
and,
5. UN World Youth Report: Youth, Social Entrepreneurship and the 2030 Agenda (United Nations, 2020)
18 | GLOBAL COMPACT STRATEGY 2021–2023
FIGURE 6: PRIORITY ISSUES
▪ Reaffirm or develop strategic partnerships with critical
ecosystem actors to drive implementation and catalyze
innovation.
THE DNA OF THE UN GLOBAL COMPACT
The Global Compact will also continue work on selective
topics such as sustainable finance and financing for
development and sustainability across the supply chain.
Later sections describe in more detail how we will design
and operate our programmes (SECTIONS 8), and how the UN
Global Compact Office will work with the Local Networks
(SECTION 10).
CO-OPERATE WITH OTHERS
There are six SDG areas where the Global Compact is
best positioned to co-operate with others who are leading.
The Global Compact will be most additive by building on
the existing momentum and engaging the business sector
selectively.
The SDGs in this category include (see Figure 6):
▪ SDG 6: Clean Water and Sanitation LEAD AND SHAPE
▪ SDG 7: Affordable and Clean Energy
▪ SDG 9: Industry, Innovation and Infrastructure
▪ SDG 10: Reduced Inequalities
▪ SDG 12: Responsible Consumption and Production
▪ SDG 14: Life Below Water
In these areas, the Global Compact will engage when there
is a compelling potential for impact by the business sector
at scale and the Global Compact is uniquely positioned
to celebrate success and best practice, curate relevant
content, and connect the business sector to relevant actors. CO-OPERATE WITH OTHERS
FOLLOW AND AMPLIFY
The remaining six SDG areas are where the Global Compact
is best positioned to follow and amplify existing efforts. The
Global Compact will be most additive by implementing or
sharing case studies, best practices, and opportunities for
the private sector to engage.
The SDGs in this category include (see Figure 6):
▪ SDG 1: No Poverty
▪ SDG 2: End Hunger
▪ SDG 3: Good Health and Well-Being
FOLLOW AND AMPLIFY
▪ SDG 4: Quality Education
▪ SDG 11: Sustainable Cities and Communities
▪ SDG 15: Life on Land
In these areas, the Global Compact will engage to connect
the business sector to relevant actors, host curated content,
and amplify the efforts of others.
UN GLOBAL
GLOBALCOMPACT
COMPACTSTRATEGY
STRATEGY2021–2023
2021–2023 | 19

8. DEFINING CORE PROGRAMMING
Core programming will be aligned to the issue areas where
UN Global Compact will lead and shape:
▪ The Ten Principles: labour, human rights, the
environment, and anti-corruption; and
▪ Lead and Shape, prioritized issue areas: Gender
Equality, Decent Work and Economic Growth, Climate
Action, Peace, Justice and Strong Institutions, and
Partnerships for the Goals.
In particular, the Lead and Shape issue areas will be
developed vertically by topic, with common architecture
across each vertical. This strategy calls on us to increase
our focus on delivering programmes and activities that are
goal/impact-oriented, designed with specific outcomes in
mind, pushing beyond reports and dialogue.
To accelerate and scale global topic expertise and leverage the work of other Local Networks to
aggregate impact, our core exchange best practices and minimize duplication of efforts.
programmes will strive to achieve
global coherence and local flexibility
recognizing the unique context in
each country.
Core programmes will be co-created with and delivered
through Local Networks with the UN Global Compact
Office playing a supporting role enabled by digital platforms
and targeted expertise. This tailoring will be guided by our
central leadership with topic experts in labour, human rights,
gender equity, anti-corruption and institutions, climate and
environment, and SDG integration.
Core programming will be designed to support companies
to embed the Ten Principles. Specifically, on climate and the
environment, programming will emphasize the importance
of achieving carbon neutrality in order to meet the commit-
ments of the Paris Agreement and will include guidance on
setting science-based plans for transitioning to net zero
emissions by 2050. On human rights and labour, program-
ming will include guidance on the practical implementation
of the UN Guiding Principles on Business and Human Rights
and the ILO’s Tripartite Declaration of Principles concerning
Multinational Enterprises and Social Policy. On gender
equality, it will provide guidance on achieving gender parity
in operations based on the Convention on Elimination of All
Forms of Discrimination against Women (CEDAW) and the
Women's Empowerment Principles, and on anti-corruption
and bribery, programming will include practical guidance on
anti-corruption, good governance and the rule of law.
20 | GLOBAL COMPACT STRATEGY 2021–2023
Photo: World Bank/Dominic Chavez
9. KEY ROLES OF
THE UN GLOBAL
COMPACT
All networks will aim to place appropriate emphasis on the
Global Compact’s core programming priorities on the topics
in which we lead and shape the agenda. Local Network teams
will tailor core programming to best address local contexts
and priorities, with consultation and input from all relevant
national stakeholders, including the local business community,
civil society, labour, UN Country Teams, and others, to ensure
alignment with local priorities.
In select circumstances, Local Networks will develop their own With a clear and specific set of issue identified as our
supplemental programming to address specific local priorities primary focus, we will take on six specific roles to achieve
that fall beyond the Lead and Shape issue areas, thereby the global aggregate business action we seek (see Figure 7).
leveraging the Global Compact’s unique capabilities to provide
relevant and actionable support for businesses in the multitude INFLUENCE AMBITION ON
of contexts in which we operate. Local Networks are supported TEN PRINCIPLES AND SDG IMPACT
and encouraged to develop supplemental programmes by
UN Global Compact has the credibility and positioning
Regional Programming Hubs. In doing so, they receive regional
to raise business ambitions around the world as demon-
strated through recent programmes and partnerships.
Three examples include the Business Ambition for 1.5°C
campaign, where we mobilized more than 320 corporate
The lenses of women and youth will be applied to our program-
ming, recognizing the specific vulnerabilities of these groups as
commitments to raise ambition on climate change and
formed more than 40 partnerships. In Sustainable Finance,
we emerge from the COVID-19 pandemic, and the potential for
we introduced the concept of SDG general-purpose linked
businesses to support their wellbeing.
bonds, unlocked SDG financing with 35 companies valued
Our programmes will also apply a cities lens where applicable, at $1.1T, and formed key partnerships, including A4S, IMP,
recognizing the importance of national companies and SMEs in PRI and UNEP FI. Through our Global Impact Initiative on
shaping the wellbeing of urban populations, but we will not lead SDG Ambition, the UN Global Compact Office and Local
city-specific efforts, instead relying on collaboration with key Networks challenge thousands of companies to raise their
partners such as C40. We recognize that cities are the locus of ambitions.
engagement of businesses, therefore, cities are a critical element
We recognize that all companies will need to do better
of our strategy. However, we do not engage with city govern-
based on their place in their journey and that the CoP and
ments and mayors and do not have programmatic intentions.
tiering system will support recognition of this progress.
Programmes will also include a robust Monitoring & Evaluation
Fulfilling this role means demonstrating what is possible
framework with clear output, outcome and impact indicators and necessary by showcasing good practice/science,
and targets, to be regularly assessed and reported on, providing show that this higher level of performance is expected by
transparency on progress, and creating an opportunity to pivot or important stakeholders, and then providing or pointing to
adjust programmes needed to achieve the desired impact. support that is available to build capacity to the necessary
level. This also means engaging in global level advocacy
In addition, given the emphasis and importance of SMEs as
as UN Global Compact, providing support and leverage to
a driver of local economic activity and as a core participant
Local Networks.
constituency, we will establish a broad-based, cross-cutting
SME programme. This programme will help the Local Networks
design and tailor their programming to meet the unique needs of
SMEs on their journey to advance their own corporate sustain-
ability and responsible business practices. We will apply the
lenses of women and youth to SME programming, recognizing
the importance of SMEs in reaching these two vulnerable
demographics.
UN GLOBAL COMPACT STRATEGY 2021–2023 | 21
 RECRUIT LEADING COMPANIES CATALYZE AND INCUBATE ECOSYSTEM
AND CORPORATE COALITIONS
We believe there remains substantial opportunity to
recruit the leading businesses in Local Network countries,
and better engage the subsidiaries of participant MNCs,
national companies and SMEs. We know this will also only
enhance the value participants receive, by providing them
the opportunity to engage with companies from outside
their sector that may have different approaches to solving
common problems. Transferring knowledge across sectors
can be an important catalyst for innovation.
This strategy also calls us on to improve our programming
for SMEs. SMEs account for most of the world’s businesses
and employ most of the world’s workers, and are well over
half of Global Compact’s participants, they have not been
fully engaged in the corporate responsibility agenda.
Fulfilling this role requires that we continuously improve our
success in recruiting and retaining participants of all types
who are committed to impact and collective action.
Specifically, we will focus efforts for each participant type
based on the unique needs and opportunities:
▪ MNCs: Invite global companies who are most admired
for their sustainability practices and SDG impact as
part of UN Global Compact leadership circle and secure
as participants other MNCs, and subsidiaries of MNCs,
with a real commitment to making progress on their
sustainability journey.
▪ National Companies: Ensure Local Network
participants includes most top national companies and
the most sustainable companies consistent with tiering.
FIGURE 7: SIX ROLES TO ACHIEVE UNITED GLOBAL COLLECTIVE ACTION
22 | GLOBAL COMPACT STRATEGY 2021–2023
▪ SMEs: Grow the number of committed SME
participants and their aggregate action through a
broad-based, cross-cutting SME programme that
will help Local Networks design and tailor their
programming to meet the unique needs to advance
their corporate sustainability and responsible business
practices.
Once recruited, retaining these participants means
providing content and programming that is directly relevant
to integrating the Ten Principles and SDGs into operations
and providing such content on an integrated digital platform
that is easy to navigate, access, and use, supporting their
leadership and role as leaders in specific areas of relevance.
With this new strategy, we will also implement target
metrics for Local Networks. For example, each Local
Network will seek to recruit the leading 10 national
companies as participants. Today, only 60 per cent (~400)
of the top ten leading firms in our 69 Local Networks have
been recruited. In ten years, we strive to have above 90 per
cent of these companies as participants.
PROMOTE ACTION AND ACCOUNTABILITY
AMONG LEADING MNCS, NATIONAL ecosystem. Fulfilling this role means forming partnerships
COMPANIES AND SMEs
We recognize that the needs of MNCs, national companies
and SMEs vary relative to their stage in the sustainability
journey.
Fulfilling this role means more clearly differentiating
activities to different types of companies, making our
programmes and activities impact-oriented, and designed
with specific outcomes in mind (for example, changing
corporate strategies, goals and behaviours, rather than just
launching another report). This strategy calls on us to shift
away from general programmes fit for a few companies
to global initiatives that fit for different company sizes,
leveraging our Local Networks, and enhanced digital
capabilities, which together will deliver global impact.
Here, a stronger digital platform will support a better
participant experience in accessing content and tools,
through webinars, trainings, and masterclasses. The
platform will help implement the CoP and impact measure-
ment practices integrated across programmes to facilitate
continuous self-assessment and learning by companies and
UN Global Compact with focus on demonstrated impact.
PARTNER STRATEGICALLY FOR IMPACT
Today the Global Compact has relationships with over 140
organizations but there is opportunity for more rigorous and
well-focussed strategic alliances across the sustainability
clearly linked to UN Global Compact ecosystems strategy
to create impact on a shared agenda; focusing on fewer
deeper partnerships, founded on agreed targets of mutual
impact, and holding long-term potential; and assessing
partnerships on ability to influence systems-level changes
that guide the business sector toward responsible practice
and positive impact.
We will also focus on strengthening and further coordinat-
ing our efforts with UN system partners so that together
we can achieve more impact, curate the wealth of UN
knowledge and content that could be valuable to the Global
Compact participants and engage diplomatic support for
policy engagement.
INNOVATIONS
UN Global Compact incubated and created three systems-
changing innovations: SBTi (ambitious, science-based
target setting for climate, towards a net zero economy),
Principles for Responsible Management (PRME, a platform
to develop the responsible leaders of the future, transform-
ing management education) and Principles for Responsible
Investment (PRI, network of investors advancing the six
Principles for Responsible Investment).
Fulfilling this role means purposeful and consistent
exploration of the sustainability landscape and corporate
progress on SDG impact to identify needs and Strategic
Intervention Points to advance the norms, forces, and
resources that engage the corporate sector in responsible
business for SDG impact, particularly in our UN Global
Compact focus areas. This also potentially means engaging
in new strategic partnerships to launch innovations as
necessary — particularly to amplify the Ten Principles and
considering roles in SDGs 5 (Gender Equality), 8 (Decent
Work and Economic Growth), 13 (Climate Action), 16 (Peace,
Justice and Strong Institutions), and 17 (Partnerships for
the Goals).
PROVIDE A PLATFORM FOR POLICY
DIALOGUE
Stakeholders see policy as an important enabler to advance
the corporate sustainability agenda, but the UN Global
Compact Office currently has few programmes or activities
designed to steer policy dialogue and shape agendas.
Businesses are seeking global standards, collaboration,
and regulatory alignment.
Fulfilling this role means leveraging the Global Compact’s
UN position and credibility to bring together influencers,
other UN agencies, and decision makers to advance specific
recommendations for policy makers (national, regional or
city-level) that can accelerate and scale business action.
UN GLOBAL COMPACT STRATEGY 2021–2023 | 23
 10. INVESTING IN OPERATING
CAPABILITIES AND ENABLERS
To deliver our UN Global Compact strategy effectively
and efficiently we will need a strong and particular set of
internal capabilities, including:
▪ Growing and better supporting our Local Networks
▪ Improving alignment and coordination between the
UN Global Compact Office, Regional Hubs and Local
Networks
▪ A resilient and effective UN Global Compact business
model
▪ Robust digital platforms to connect, communicate,
and convene at scale
▪ Curated content and tools for action
▪ Interoperable standards, reporting and data.
This strategy calls for investment
and changes in our operating model
so that we can fund the journey to
achieve our ambition, empower Local
Networks, and build capabilities to
deliver greater value to UN Global
Compact businesses and their par-
ticipant experience.
GROWING AND BETTER SUPPORTING capabilities, including a respected and proven leader, and
OUR LOCAL NETWORKS
Local presence in 75 countries around the world through
the 69 Local Networks of UN Global Compact is one of
the organization’s primary differentiators and a strategic
asset. The continued success of UN Global Compact is
reliant upon strengthening the capabilities of the Local
Networks and enabling them to create higher value for
local participants and greater impact through collective
action.
We recognize a key component of UN Global Com-
pact’s long-term sustainability is ensuring we are
globally representative. While our focus, outcomes, vis-
ibility, and impact are strong in much of the Global North,
we see tremendous opportunity to heighten our presence
and impact in the Global South. We also recognize that we
are uniquely positioned to address corporate sustainability
in the Global South and as an entity of the United Nations,
24 | GLOBAL COMPACT STRATEGY 2021–2023
we have a mandate to advance UN values globally. Expand- in the Global South and prioritizing Africa. New Local Regional Networks will execute many of the same functions
ing our footprint in the Global South, especially Africa, is Networks in the Global South will invite participation from as Local Networks such as offering curated programmes on
also essential in harnessing the potential of youth. vibrant businesses in all sectors interested in adopting the topics of regional importance, soliciting the support of key
Ten Principles and pursuing their sustainability journey. stakeholders, and recruiting leading businesses. Notably,
To achieve our stated ambition, UN Global Compact will Quantitative and qualitative analyses of countries without these Regional Networks will also be laying the groundwork
establish new Local Networks in priority countries in the active Local Networks yielded a short list of candidates for for future Local Network expansion.
Global South and Regional Networks in select locations. a “first wave” of expansion with priorities to be determined.
Additionally, we have set a goal that by 2023 companies
REGIONAL HUBS
in any country can engage through a Local Network or
REGIONAL NETWORKS
participate in activities offered through a Regional Hub. Expanding UN Global Compact footprint will increase the
Regional Networks will collectively inspire action and need for further organizational support from the UN Global
The growth of these new networks will also be supported progress where countries are not yet ready to sustain a Compact Office. To enable the founding of new Local and
by a refreshed approach to subsidiaries of MNCs, with a Local Network. Initial analysis has determined the need for Regional Networks, a refreshed and regionalized operating
focus on strengthening engagement of all parts of MNCs in two Regional Networks, with coverage of 30 countries: a
model will facilitate the efficient delivery of tailored content
local sustainability ecosystem around the world in pursuit Caribbean Regional Network covering CARICOM countries to participants of the Global Compact. The Global Compact
of global impact. Based on this Global Strategy, we will re- and a West Africa Regional Network, covering ECOWAS has three existing Regional Hubs in Africa, the Middle East
fresh our current Africa Strategy. This will provide a critical countries. and Latin America. As part of this strategy, we will introduce
stepping-stone towards ensuring balance in our footprint in
two additional Regional Hubs to ensure our Local Networks
the Global South and reaching women and youth.
are fully and effectively supported.
STRENGTHEN LOCAL NETWORK RESOURCES AND
CAPABILITIES
We know that successful Local Networks are characterized FIGURE 8: SUCCESSFUL LOCAL NETWORKS – EIGHT INGREDIENTS
by eight critical ingredients to effectively catalyze action on
the ground (see Figure 8).
These eight ingredients include a combination of
ecosystem characteristics, such as the essential linkage
with labour unions and civil society (environment, human
rights and corruption).
Our 69 Local Networks are at varying stages of maturity
across these eight ingredients, and targeted investments
and capacity-building will be necessary to help each
network achieve its maximum potential. A new Local
Networks Maturity Model will be created with specific
measures to help networks assess their progress and
guide the UN Global Compact Office and Regional Hubs in
providing support.
ADD NEW LOCAL NETWORKS
In addition to strengthening each of our existing Local
Networks through increased resourcing, more joint global
programme adaptation and co-creation, and board capacity
building, we will also expand our footprint, particularly
UN GLOBAL COMPACT STRATEGY 2021–2023 | 25
 IMPROVING ALIGNMENT AND ▪ They communicate to participants, highlighting
COORDINATION BETWEEN THE UN
GLOBAL COMPACT OFFICE, REGIONAL
HUBS AND LOCAL NETWORKS
The Global Compact’s strategic ambition requires us to
strengthen the relationships and enable the UN Global
Compact Office and new Regional Hubs to effectively better
support and empower Local Networks.
To increase mutual transparency,
trust, and collaboration within
the organization, we will make
a strategic shift in how programme-
related work is developed, allocated,
managed, and implemented both
centrally and with the Local
Networks.
This will entail, most importantly, re-defining the global
programmatic collaboration model to ensure new pro-
grammes are co-created with Local Networks in an agile
and iterative fashion that builds upon local learning, clarifies
roles, responsibilities, and authorities across the UN Global
Compact Office and with Local Networks.
IMPROVING ALIGNMENT:
ROLE OF LOCAL NETWORKS
To accelerate and scale global collective impact, our
strategy calls on us to further strengthen and empower our
Local Networks and expand our local participant base.
Local Networks will take the lead on programme delivery
and impact measurement for their participants including
national companies, SMEs, and subsidiaries of MNCs.
Local Networks have three key roles in core programming
with a focus on catalyzing accountable companies:
▪ They convene participants and critical local
stakeholders including local UN coordinators or agency
representatives and corporate coalitions, bringing them
together around a shared agenda to exchange ideas and
best practices, and to generate momentum needed for
behaviour and policy change.
▪ They connect participants — subsidiaries of MNCs,
national companies and SMEs — linking them to
each other within sectors, value chains, or cities, and
introduce those from different sectors and locations UN Global Compact Office should increase technical and
to learn from each other.
26 | GLOBAL COMPACT STRATEGY 2021–2023
relevant content and tools curated or created by the
Global Compact, including digital resources curated by
the UN Global Compact Office.
Together, this provides both a potential catalyst for
innovation and the practical support businesses need to
implement change.
IMPROVING ALIGNMENT: ROLE OF THE UN GLOBAL
COMPACT OFFICE
The strategy calls for the UN Global Compact Office to
further elevate its curation of content, resources, and tools
valuable to help participant companies understand and
apply the Ten Principles and integrate the SDGs into their
plans and operations.
The UN Global Compact Office has a significant role to
play in programme design and delivery, especially through
our digital platform. The goal is for UN Global Compact
to become the most valuable source for best-in-practice
content, resources, and tools enabled by a leading-edge
digital platform that enriches the participant experience.
The UN Global Compact Office also plays a key role in
recruiting, convening, and connecting leading MNCs at
the global level. This includes driving in-person and digital
global and regional events. Key convening opportunities
naturally arise around UN summits, but the UN Global
Compact Office also drives convening around other global
sustainability events to ensure UN Global Compact’s
continued influence in the global ecosystem. Finally, and
critically, the UN Global Compact Office also connects
MNCs to the Local Networks of which their subsidiaries and
value chain businesses are participants.
IMPLEMENT A SINGLE, GLOBAL, COORDINATED
ANNUAL STRATEGIC PLANNING PROCESS
To facilitate global coherence and local flexibility, we will
establish and implement a formal, focussed, globally man-
aged, and coordinated Annual Strategic Planning process
across the UN Global Compact Office and Local Networks.
This Annual Process will enable coordination and planning
with external stakeholders, including UN stakeholders, as
necessary. Within the Global Compact this process will en-
able coherence in direction, activities, communications, and
budgeting and formally increase opportunities for input and
collaboration by Local Networks as well as direct where the
operational support to Local Networks.
RESILIENT AND EFFECTIVE UN GLOBAL
COMPACT BUSINESS MODEL
The 2021–2023 Strategy charts an ambitious plan for UN
Global Compact. The strategy calls for, among other things:
delivery of tighter value propositions and richer participant
experiences, stronger Local Networks, an expanded
footprint, stronger programming, and discretionary funding
for programming that is best aligned with the priorities of
the Global Compact and in consideration of its donors.
The Global Compact will need an enhanced business model
that both increases revenues and revisits the allocation of
funds internally to better address organizational demands
to deliver this strategy. This means increasing all revenues
to enable growth in capacity and internal capabilities
both at the UN Global Compact Office and within Local
Networks. Specifically, the organization needs to refresh
the business funding model to ensure stability and predict-
ability in core revenue streams, build internal resources for
growth in new geographic and issue areas; enable invest-
ment on catalytic issues, reinforce Local Network capacity;
underwrite sufficient Local Network resourcing; and enable
programmatic agility in country.
Additional funding will be secured by designing and execut-
ing adjustments that include adjustments to participant
fees consistent with value, pursuing grants aligned to
programme priorities, fees-for-services where appropriate,
and changes in allocations and funding mix to enable
growth and strengthening of Local Networks.
ROBUST DIGITAL PLATFORMS
TO CONNECT, COMMUNICATE,
CONVENE AT SCALE
The app-based, one-click features of consumer and
business facing technology must be matched by the
Global Compact in how it delivers its digital content, tools,
services, and participant experience. This will require
investing in better digital platforms and recruiting and
building staff capabilities in digital, human-centred design,
and agility. It will also mean looking to our corporate and
UN partners for opportunities to better leverage state-of-
practice resources where possible,
UN Global Compact will invest in
creating an integrated digital
platform not only to deliver easily
navigable, curated, and customized
content centred on the business
participant experience, but also to
ensure that all stakeholders enjoy
an effective, seamless, and efficient
user experience.
A single digital platform will allow us to leverage the
richness of global and local content and programmes
while minimizing duplicative or redundant efforts at the
local level and enabling the sharing of best practices and
adaptation for local needs.
This digital platform will embrace a human-centred design
approach to building user journeys to guide development
of content and tools (e.g. users see recommended content,
tools, and programmes based on business size, sector,
geography, and priorities). It will upgrade current systems,
make content available in multiple languages, integrate
programme delivery with content creation. It will also
consolidate new participant enrolment and recruitment,
leveraging data science to enable swifter vetting, onboard-
ing, and servicing capabilities.
Ultimately, this platform will become the one entry point for
all participants to access the full universe of content and
tools, including:
▪ Success cases across sectors, geography, size of
company
▪ Practical tools and resources including webinars,
training, masterclasses, events and workshop
opportunities
▪ CoP and related database for aggregation, reporting,
and analysis
▪ Local Network or UN Global Compact Office
programming
▪ Policy dialogue engagement, leveraging of UN agencies’
technical expertise and strategic partners’ resources
and tools.
UN GLOBAL COMPACT STRATEGY 2021–2023 | 27

CURATED CONTENT AND TOOLS
FOR ACTION
Leveraging digital platforms, we will curate relevant and
actionable best-in-class content and resources from the
Global Compact, the UN system, and industry coalitions
matched to industry, issue areas, geography, company size,
and stage of sustainability journey for each topic integrated
with the CoP. The Global Compact’s platform will serve as
the first-stop resource for businesses seeking knowledge on
how to embrace the Ten Principles, integrate the SDGs, and
demonstrate progress and impact along their sustainability
journeys.
Most critically, the digital platform will leverage existing UN
agency and partner technical expertise ensuring that we are
only creating what is truly additional and specifically unique
to our value proposition.
INTEROPERABLE STANDARDS REPORTING AND
DATA ECOSYSTEM
The CoP is a unique asset and tool of UN Global Compact.
It provides a window into the operationalisation of the
Ten Principles and sustainability agenda in all participant
companies and provides a guide for those companies to
make progress in their journeys. UN Global Compact has
significant potential to use the CoP to create value for
companies and the ecosystem. We will therefore invest and
improve in the CoP, focusing on four specific areas.
SET NORMS AND INSPIRE ACTION
This includes norms all participants can implement and
specific targets for which all should aspire to demonstrate
progress; goes beyond KPIs (e.g. complete a human rights
assessment); and allows for voluntary reporting on other
areas to demonstrate progress.
ADVANCE ACCOUNTABILITY
This includes setting the foundation for demonstrating the
tiered progression and achievement of the Global Compact
participants on the Ten Principles and their contribution
to issues and SDGs. The revised CoP will also become
the basis for determining if a participant continues to
demonstrate sufficient progress to continue participation.
This discernment will be based on clear definitions of what
28 | GLOBAL COMPACT STRATEGY 2021–2023
leadership looks like for companies of different sizes and
sectors so that the standards and expectations are clear.
While the Global Compact will measure its own progress
and impact across multiple dimensions, the performance
of our participants on the CoP and their aggregate contribu-
tions will be a key indicator of our success. Achieving the
global aggregate impact we seek means we will only be as
successful as our participants
COP AS A LEARNING TOOL
We believe we can strengthen value of the CoP for users,
the ecosystem, and the Global Compact by reorienting it as
a learning tool and making data searchable by sector and
geography. We will assemble practical guidance and enable
reporting on the Ten Principles and progress on specific
issues or SDGs. We will integrate the CoP into participant
journeys through programmes and the digital platform
to enable recommendations for curated materials and
programmes. We will also harmonize comparable data to
allow the identification of performance relative to peers and
best practices. This will further enable the Global Compact
to identify “lighthouse” examples.
CREATE ADDITIVE VALUE TO THE ECOSYSTEM
The Global Compact aims to adopt and demonstrate
effective use of interoperable standards to minimize the
burden of reporting redundancies for participants as the
ecosystem evolves.
The Global Compact uses its unique position to influence
the reporting ecosystem, including in standards, regula-
tions, and policy. CoP data can be made publicly available
to demonstrate the progress of companies and industries,
which can be analysed for any given individual company,
but can also be aggregated to show the business sector’s
broad contribution and trends across multiple indicators.
This will be a valuable resource to companies, stakeholders,
investors, governments and the broader UN system This
enables companies to draw on their own data to effectively
engage their stakeholders and investors.
11. MEASURING OUR IMPACT
Over time, our goal is to raise the floor — the baseline — and
raise the ceiling — the expectations — between business,
government, and society across all Ten Principles in human
rights, labour, the environment, and anti-corruption.
As such, we will measure our aggregate progress on and
the impact of our strategy across all strategic initiatives and
programmes, using a combination of indicators to monitor
outputs, outcomes, and impacts achieved.
1. To ensure that we are on track to achieving our ambitious
strategy, we have identified Strategy Progress KPIs
(see APPENDIX) that combine the achievements of our
participants, the efficacy of our programmes, digital
services and tools, and our own internal efficiency
and effectiveness. The Strategy Progress KPIs should
be understood as process indicators to assess the
organizations progress in moving the strategy along but
should not be interpreted as the impact indicators of the
strategy.
2. To ensure programme effectiveness and impact, all
programmes will report against a robust Programmes
Monitoring and Evaluation Framework with clear
output, outcome and impact indicators and targets.
These will be regularly assessed and reported on
internally, providing full transparency into progress
and creating an opportunity for the Executive Team to
pause, accelerate, invest, pivot or adjust programmes as
needed to achieve the desired impact.
To ensure UN Global Compact also aspires to
global impact that exceeds the sum of its individual
programmes through raising the ambitions of business
and catalyzing their commitments for collective action,
we will also measure Indicators of Collective Impact,
which are derived from the Ten Principles and the SDGs.
We are in the process of setting targets on these now, with
the expectation that over time, additional indicators and
targets may be added. These initial metrics will include, but
not limited to:
Number of companies committed to the goals of
the Paris Agreement
▪ Number of businesses committed to net zero emissions
or carbon neutrality
▪ Number of companies with science-based plans for
transitioning to net zero emissions by 2050
▪ Number of companies on track to decarbonize their
portfolios
▪ Number of companies undertaking disclosures aligned with
the Task Force on Climate-related Financial Disclosures
(TCFD)
▪ Amount of incremental investment of GC businesses
towards climate action
Number of companies with public commitments to
human rights and labour
▪ Number of companies committed to implementing the UN
Guiding Principles on Business and Human Rights
▪ Number of companies conducting a Human Rights Impact
Assessment
▪ Number of companies with processes to enable the
remediation of any adverse human rights impacts they
cause or to which they contribute
▪ Number of companies offering living wages
Number of companies demonstrating broad-based
gender parity in operations
▪ Number of companies with targets for women's
representation at all levels of management
▪ Number of companies with family/parent friendly
workplace policies
▪ Number of companies with gender-sensitive products and
offerings relevant to their sector
Number of companies with enforced compliance
on anti-corruption and bribery
▪ Number of companies with a commitment to transparency
in corporate reporting
▪ Number of companies with processes to enable reporting
of corruption and bribery
Number of companies taking action to advance
the SDGs
The full set of indicators will be complementary to various
global conventions and agreements including the UN Guiding
Principles on Business and Human Rights, the International
Labour Organization Tripartite Declaration of Principles
Concerning Multinational Enterprises and Social Policy, the
Convention on the Elimination of All Forms of Discrimination
Against Women (CEDAW), the Beijing Declaration and
Platform for Action, the Women’s Empowerment Principles
and Analysis Tools, Gender Dimensions of the Guiding
Principles on Business and Human Rights.
UN GLOBAL COMPACT STRATEGY 2021–2023 | 29
 12. OPERATION- 13. FIVE STRATEGIC SHIFTS
ALIZING THE
STRATEGY To develop the 2021–2023 strategy, a rigorous, evidence-
based, and broad consultative process was followed.
For each element of our strategic framework, a range of
To implement the strategy, UN Global Compact has choices were evaluated and deliberated upon to identify
developed an Operationalization Roadmap comprised of the right way forward for the Global Compact.
twelve Workstreams and 30 Initiatives. Action on these
workstreams will commence in the first quarter of 2021 This disciplined process set directions in several areas as
with a view to initiate implementation of key aspects of outlined above, which collectively amount to five strategic
the strategy in parallel. Workstreams and initiatives cover shifts for the Global Compact. Each of these build upon
various topics including: existing foundations and successes and will enable
meaningful new strides in the current global, environmen-
▪ programme priorities and delivery models
tal, and social context.
▪ global operations
▪ finance 1. ACCOUNTABLE COMPANIES: UN Global Compact will
strive to move participant companies faster and farther
▪ communication on progress
than others in demonstrating progress on corporate
▪ participant engagement sustainability and responsible business practices. In
▪ digital transformation aggregate, Global Compact participants will demonstrate
higher adherence to the Ten Principles and material
▪ partnerships
contribution to the SDGs than those who are not part
▪ communications of UN Global Compact. The refreshed CoP provides an
▪ fundraising essential tool and consistent framework that facilitates
▪ organizational realignment engagement with companies on their individual sustain-
ability journeys and enables an aggregate view of impact.
▪ project management
An SME strategy will also be developed. 2. BALANCED GROWTH OF LOCAL AND REGIONAL
NETWORKS FOR GLOBAL COVERAGE: In addition
Led by a member of UN Global Compact’s Executive to a concerted effort to strengthen each of the existing
Management and a cross-functional team of staff, each 69 Local Networks of the Global Compact, extending
workstream will involve broad consultation with the Global our engagement with businesses in other countries,
Network Council, Local Networks and other stakeholders particularly in the Global South, will be a central objec-
as needed. tive, achieved through the establishment of new Local
Networks, Regional Networks, and broader geographic
coverage of existing Local Networks.
3. MEASURABLE IMPACT IN PRIORITIZED AREAS:
Anchored by the Ten Principles in the areas of human
rights, labour, the environment, and anti-corruption as
the fundamental driver of corporate sustainability and
30 | GLOBAL COMPACT STRATEGY 2021–2023
responsible business practice, the strategy prioritizes five
issue areas where the Global Compact will seek to lead
and shape. These include Gender Equality (SDG 5), Decent
Work and Economic Growth (SDG 8), Climate Action
(SDG 13), Peace, Justice and Strong Institutions (SDG 16),
and Partnerships (SDG 17). Recognising the importance
of national contexts, country-level priorities aligned
to the unique value proposition of the Global Compact
will remain central. Our programmes, efforts to curate
knowledge and best practice, convening, and partnerships
will seek to deliver material progress in each of these
prioritized areas.
4. HARNESSING THE COLLECTIVE ACTION OF SMEs:
Accounting for most of the world’s businesses and
employers, SMEs have a unique collective role in advanc-
ing corporate sustainability and responsible business
practices individually and in the value chains in which they
participate. SMEs are also essential actors in advancing
the SDGs in developing and emerging economies,
especially in Africa. With over half of Global Compact
participants coming from this segment, a specific focus of
the strategy is to enhance engagement and action of SMEs
through the establishment of a targeted and cross-cutting
SME programme that leverages digital tools and value
chains to reach scale. Throughout this programming, we
will apply the lenses of gender and youth, recognising the
importance of SMEs to reach these two demographics.
We will also tie our SME approach closely to the Africa
Strategy, which will be refreshed in early 2021.
5. STRONG AND ACTIVE ENGAGEMENT WITH THE UN:
In working ever more closely with various UN Agencies,
Resident Coordinators, and UN Country Teams, the Global
Compact’s reach and ability to drive change in business
is substantially enhanced. This strategy calls for deeper
collaboration at the global and national levels, particularly
in the UN Common Country Analysis and private sector
engagement processes to unlock the collective strength
of the UN in advancing corporate sustainability and
responsible business practice globally.
UN GLOBAL COMPACT STRATEGY 2021–2023 | 31
 14. CONCLUSION
We are cognizant that this strategy will be implemented
during a COVID-19 recovery period. Each country and sector
will have a unique path to address the multifarious stresses
experienced. Business has a transformative role to play in this
recovery, which we will support.
We are optimistic about UN Global Compact’s capability to
use this unique moment and elevate our ambition, to heighten
and seize the urgency to act, and to accelerate and scale
global collective impact by upholding the Ten Principles and
delivering on the SDGs through accountable companies and
ecosystems that enable positive change.
It is time to align with action-minded participants, select
prioritized areas of desired impact, and drive aggregate global
and local action inspired by our guiding Ten Principles.
Our strategy will bring to UN Global Compact more
differentiation and growth through an embrace of our unique
roles, delivery through a focus on impact, and discipline
through selectivity in what we do.
TOGETHER,
WE WILL BE ONE
GLOBAL COMPACT
UNITING BUSINESS
FOR A BETTER
WORLD.
32 | GLOBAL COMPACT STRATEGY 2021–2023
ACKNOWLEDGEMENTS
The United Nations Global Compact launched an inclusive
strategy development process over a 12-week period
from October to December 2020, forming a broad-based
engagement effort with more than 2,000 stakeholders
across UN Global Compact and in the broader
sustainability ecosystem.
We are indebted to the UN Secretary-General and Deputy
Secretary General, Board Members of UN Global Compact
and the Foundation for the Global Compact, and the
Global Compact Global Network Council for their active
engagement, direction, and support in building consensus
on the strategic directions set forth in this document.
Additionally, we wish to thank Boston Consulting Group for
their extensive support in guiding us through this strategy
development process.
LIST OF FIGURES
Figure 1 UN Global Compact Strategy Framework
Figure 2 UN Global Compact Key Stakeholders
Figure 3 UN Global Compact Unique Sources of Value for Participants
Figure 4 UN Global Compact Value Proposition by Participant Constituency
Figure 5 Assessing UN Global Compact Impact Potential and Additionality
Figure 6 Priority Issues
Figure 7 Six Roles to Achieve United Global Collective Action
Figure 8 Successful Local Networks – Eight Ingredients
STRATEGY DEVELOPMENT PROCESS
This process included multiple facilitated discussions
among the Executive Management Team (EMT) and
Global Network Council (GNC), detailed historical and
document review, in-depth focus groups with core
constituents, and four surveys which collected 2,000
responses.
More than 450 people were directly engaged, most on
multiple occasions, through interviews and focus groups.
This includes the EMT, the GNC, Local Networks of the
Global Compact, active and prospective participant
businesses and non-businesses of the Global Compact,
the Executive Office of the Secretary-General (EOSG),
Resident Coordinator Offices (RCOs), UN Country
Teams (UNCTs), UN Global Compact Expert Network,
the Government Group, Group of Friends, current and
prospective philanthropic partners, external corporate
sustainability experts and the Boards of UN Global
Compact, Foundation for the Global Compact, and
Principles for Responsible Management (PRME).
BCG facilitated regular working sessions with all
stakeholders to deliberate upon the various analyses and
their implications. This document reflects the findings and
recommendations that emerged from stakeholder inputs,
discussions, analysis, and strategic planning.
UN GLOBAL COMPACT STRATEGY 2021–2023 | 33
 APPENDIX: TARGETS AND KPIs
AGGREGATE IMPACT INDICATORS
Number of companies committed to committed to the
goals of the Paris Agreement
▪ Number of businesses committed to net zero emissions
or carbon neutrality
▪ Number of companies with science-based plans for
transitioning to net zero emissions by 2050
▪ Number of companies on track to decarbonize their
portfolios
▪ Number of companies undertaking disclosures aligned
with the Task Force on Climate-related Financial
Disclosures (TCFD)
▪ Amount of incremental investment of GC businesses
towards climate action
Number of companies with public commitments to human
rights and labour
▪ Number of companies committed to implementing the
UN Guiding Principles on Business and Human Rights
▪ Number of companies conducting a Human Rights
Impact Assessment
▪ Number of companies with processes to enable the
remediation of any adverse human rights impacts they
cause or to which they contribute
▪ Number of companies offering living wages
Number of companies demonstrating broad-based gender
parity in operations
▪ Number of companies with targets for women's
representation at all levels of management
▪ Number of companies with family/parent friendly
workplace policies
▪ Number of companies with gender-sensitive products
and offerings relevant to their sector
Number of companies with enforced compliance on
anti-corruption and bribery
▪ Number of companies with a commitment to
transparency in corporate reporting
▪ Number of companies with processes to enable
reporting of corruption and bribery
Number of companies taking action to advance the SDGs
34 | GLOBAL COMPACT STRATEGY 2021–2023
TARGET 1: DOUBLE THE NUMBER OF COMMITTED
COMPANIES DEMONSTRATING ACCOUNTABILITY
AND PROGRESS – LEADING MNCS AND LEADING
NATIONAL CORPORATIONS
▪ % Fortune Global 500 participants
▪ % top 20 leading companies in country
▪ % of companies setting targets to evidence the Ten
Principles and SDGs (e.g. % companies with living wage
targets, % companies with 1.5 degree and net-zero
targets, etc.)
▪ % of companies demonstrating progress to targets by
areas of 10Ps and SDGs (e.g. change in % employees at
living wage, change in emissions, etc)
▪ % of companies by cohort demonstrating progress at
years 2, 3, 5, 7, 10 and in Leadership Circles against
baseline year
▪ % MNCs engaged in Subsidiaries Programmes
▪ % of companies accessing learning and benchmarking
via curated resources
▪ % companies under review for lack of demonstrated
progress
▪ Aggregate performance of UN Global Compact
participants compared to non-UN Global Compact
companies in demonstrating impact on the Ten
Principles and SDGs (to be defined)
▪ Evidence of collaborative policy change and advocacy
achievements
▪ Fortune Global 500 Net Promoter Scores
TARGET 2: GROW AND STRENGTHEN LOCAL
NETWORKS AND REGIONAL NETWORKS FOR
GLOBAL COVERAGE AND BALANCED GROWTH
▪ # of countries engaged through Regional and Local
Networks
▪ # of companies registered in Global South
▪ Local Network capabilities within stages of Local
Network maturity model assessment
▪ Peer feedback scores from Local Networks to GCO on
support and value
▪ Strategic Partners’ feedback scores to Local Networks
▪ Evidence of collaborative policy change and advocacy
achievements
TARGET 3: GROW COMMITTED SMEs AND THEIR
COLLECTIVE ACTION
▪ # of SMEs
▪ % of Leading national SMEs in network
▪ % SME participants engaged in commitment and
learning events
▪ % of companies accessing learning and benchmarking
curated resources
▪ % of companies by cohort demonstrating progress at
years 2, 3, 5, 7, 10 and in Leadership Circles against
baseline year
▪ Maturity stage of SME program in country
▪ Member feedback/Net Promoter Scores to Local
Network
TARGET 4: FOCUS AND STRENGTHEN UN GLOBAL
COMPACT ENGAGEMENT WITH UN AGENCIES FOR
SHARED IMPACT
▪ # of MOUs established with UN organizations
specifically detailing areas for collaboration,
expectations on engagement, targets for impact,
governance, and reporting for accountability
▪ Annual progress reviews by MOU indicating
performance to targets and impact created
▪ # of Local Networks and Regional Networks engaged
with specific UN Agencies on programming objectives
▪ Peer Feedback Scores on UN Agency satisfaction with
UN Global Compact contributions to agreed objectives
▪ Evidence of policy achievements by UN agencies where
UN Global Compact notably contributed by bringing
business into the dialogue and activity
TARGET 5: ENGAGE EFFECTIVE INDUSTRY
COALITIONS TO ADVANCE THE PRINCIPLES ▪ Growth of curated content
AND GOALS
▪ # of engaged industry coalitions aligned to the Ten
Principles and our areas of SDG focus
▪ Evidence of Seat At The Table (SATT) for coalitions
connected to the Ten Principles and our areas of SDG
focus
▪ Presence and use of aligned industry coalition content
accessible and curated on Global Compact platforms
▪ Annual audit of impact
TARGET 6: EXECUTE FOCUSED, ALIGNED
PROGRAMMES
▪ % of aggregate programming budgets aligned to UN
Global Compact primary focus areas
▪ % of companies addressed by/accessing programme
content
TARGET 7: IMPLEMENT, IMPROVE AND TRACK
PROGRESS THROUGH THE COP
▪ UN Global Compact member satisfaction with CoP
reporting experience and value demonstrated
▪ % of companies by cohort demonstrating progress at
years 2, 3, 5, 7, 10 and in Leadership Circles against
baseline year
▪ % of companies using voluntary reporting areas
▪ Value audit of meta-analysis and evidence of insights
generated informing programming, priorities, and the
Global Compact agenda
▪ Programming feedback on value of CoP insights to
program design
▪ Evidence of external usefulness of aggregated data/
analytics to inform agendas of partner
TARGET 8: ENHANCE THE QUALITY AND VALUE OF
CURATED PLATFORMS
▪ % of participants accessing curated content
▪ Velocity of content access
▪ Change in aggregate content value scores
▪ Comparative assessments of user digital experience
UN GLOBAL COMPACT STRATEGY 2021–2023 | 35
THE TEN PRINCIPLES OF THE ABOUT THE UNITED NATIONS
UNITED NATIONS GLOBAL COMPACT GLOBAL COMPACT
As a special initiative of the UN Secretary-General,
HUMAN RIGHTS the United Nations Global Compact is a call to
companies everywhere to align their operations and
1 Businesses should support and respect the strategies with Ten Principles in the areas of human
protection of internationally proclaimed rights, labour, environment and anti-corruption.
human rights; and Our ambition is to accelerate and scale the global
collective impact of business by upholding the Ten
2 make sure that they are not complicit in Principles and delivering the Sustainable Development
human rights abuses. Goals through accountable companies and ecosystems
that enable change. With more than 12,000 companies
LABOUR and 3,000 non-business signatories based in over
160 countries, and 69 Local Networks, the UN Global
3 Businesses should uphold the freedom of Compact is the world’s largest corporate sustainability
association and the effective recognition of initiative — one Global Compact uniting business for
the right to collective bargaining; a better world.

4 the elimination of all forms of forced and For more information, follow @globalcompact on social
compulsory labour; media and visit our website at unglobalcompact.org.

5 the effective abolition of child labour; and

6 the elimination of discrimination in respect of

employment and occupation.
© 19 January 2021. United Nations Global Compact
ENVIRONMENT 685 Third Avenue New York, NY 10017, USA

7 Businesses should support a precautionary

approach to environmental challenges;

8 undertake initiatives to promote greater

environmental responsibility; and

9 encourage the development and diffusion of

environmentally friendly technologies.

ANTI-CORRUPTION

10 Businesses should work against corruption in

all its forms, including extortion and bribery.

The Ten Principles of the United Nations Global Compact are derived from: the
Universal Declaration of Human Rights, the International Labour Organization’s
Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on
Environment and Development, and the United Nations Convention Against Corruption.

Design: Lyubava Kroll